The Blessing and "The Burden" of Mt.Gox Bitcoin To Be Released

The Mt.Gox hack is probably one of the most famous ones in the history of crypto, especially among the OGs of this space, although probably some newcomers have never heard of it. These are probably more familiar with the LUNA collapse than Mt.Gox.

137,000 BTC worth roughly $2.8 billion will soon be released into the market as funds lost to the Mt. Gox hack of 2011 and subsequent loss of 850,000 BTC worth around $17.8 billion at today’s price. In 2014 Mt. Gox reported that it had found 200,000 BTC, but those coins have been locked in litigation until now.

In November 2021, Mt. Gox released a formal “Rehabilitation Plan” to return lost funds to investors who lost access to their crypto some 7 years ago. Then, on July 6, 2022, Mt. Gox and “Rehabilitation Trustee” Nobauaki Kobayashi sent an email to creditors giving them the option to receive USD, BTC, or BCH. The news brings us closer than ever to funds finally being released to creditors.
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So, we're talking of 130,000 bitcoins that are going to be paid back to 2014 investors by the hacked crypto exchange. That would for sure put high selling pressure on the price of BTC IF, and I repeat IF, all of these bitcoins would be instantly put into a sale by their holders at the same time.

That's not going to happen, though, because some of the creditors have already sold their claims to crypto funds such as Fortress Investment Group LLC which offered creditors an early payout of between $600 and $1,300 in cash. Hence we can no longer talk of the same amount(130,000 BTC) that is planned of being released to their "hacked owners".

What could be the scenarios that could play out involving these bitcoins? It's pretty simple... Some have already sold their claims, as mentioned above, thus no longer receiving shit from the rehabilitation program, and these ones are for sure no Bitcoin maxis, but the ones that have held to their claims are for sure more fundamentally driven than the first category.

These ones, not all of them for sure, will probably move these funds to cold storage, or sell a portion of them and move the other to safety. Then there's also the category of them that are no longer the maxis that they used to be back in 2014. These ones will probably exchange their bitcoins for alts. That's an option too...

130,000 BTC at the current price is worth about $3 billion dollars. The 24 hours volume for BTC sits currently at $25 billion. Considering that probably less than 25% of that amount that shall be released will hit the market, then it's not much of a big deal. We're probably gonna see a daily or weekly nasty red candle, but the market will absorb that amount rather quickly.

I doubt everyone willing to dump will do that at the same time. I really do. But if it happens, I'm open to adding more cheap coins to my portfolio. It's not going to be the end of the world, that's for sure. Have fun by then!

Thanks for your attention,
Adrian

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